Tuesday, August 6, 2013
The CalPERS Long-Term Care Affair
CalPERS position is that it didn't deliberately lowball the initial premiums but instead just underestimated what the costs would be. But some subscribers disagree and now there is a lawsuit.
From the Sacramento Bee:
CalPERS was sued Tuesday over the big rate hikes it imposed on its long-term care insurance program, which covers stays in nursing homes. The class-action suit was filed by a Los Angeles law firm on behalf of more than 100,000 CalPERS members who have purchased the coverage and now face big rate increases. The lawsuit, filed in Los Angeles Superior Court, says policyholders were duped into thinking the rates would be fixed and "reasonably priced."...
Full story at http://www.sacbee.com/2013/08/06/5628197/calpers-sued-over-long-term-care.html
Update: A link to the lawsuit is at http://blogs.sacbee.com/the_state_worker/2013/08/read-the-lawsuit-against-calpers-on-long-term-care-insurance.html